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Victoria from Techpoint here,
Here's what I've got for you today:
- MTN Uganda in a $70.9M hot water with tax collector
- CNG switch: Don't convert before reading
- Lendsqr's ₦1 billion bet on Nigerian lenders
MTN Uganda in a $70.9M hot water with tax collector
MTN Uganda is in hot water with the Uganda Revenue Authority (URA) over unpaid taxes amounting to Shs 260 billion ($70.9 million). The URA claims that MTN collected excise duty and VAT on behalf of the government over the past five years but never remitted the funds.
According to sources, MTN is responsible for handing over all taxes collected for the government, and now, it’s time for them to pay up. The government has even offered a payment plan, but how MTN raises the money is up to them.
MTN isn’t taking it lightly, though. They’ve allegedly accused the URA of using 'coercive tactics' to extract the Shs 260 billion from them, calling the tax assessment 'unfounded.'
They also raised concerns about corrupt intentions from URA officials, suggesting this dispute could seriously harm their financial health. MTN CEO Sylvia Mulinge said that if the tax demand stands, it would limit their operations, reduce their contribution to the economy, and scare off investors.
The tax battle started after the URA hired Kenyan firm SafariTech in 2023 to audit telecoms for tax compliance, following the president’s directive to crack down on tax evasion.
Initially, the unpaid taxes were assessed at a staggering Shs 1.5 trillion ($409.1 million) but were later reduced to Shs 260 billion after the audit team adjusted some rules.
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Despite MTN’s claim that their finances have been audited and are tax-compliant, the URA remains firm. They argue that MTN has collected billions in taxes from everyday Ugandans, including boda boda riders and families making phone calls, but failed to pass on the money.
The government is questioning why they should borrow from foreign banks for infrastructure projects while MTN allegedly holds on to these unpaid taxes.
CNG switch: Don't convert before reading
Last week on X (formerly Twitter) — and if you still don’t know that X used to be called Twitter, where have you been? — someone pointed out how wild it is that Nigerians just adapt to anything.
Not long ago, we were all shouting about the fuel price hike, and now we’re talking about converting our cars to Compressed Natural Gas (CNG). It’s crazy how quickly Nigerians adjust to things like rising costs and changes in the standard of living. Honestly, I don’t know what we’re supposed to do either, but something just feels off.
Well, back to the crux of the story: CNG has quickly become the go-to alternative as petrol prices keep skyrocketing. Thanks to government initiatives like payment plans for converting petrol cars to CNG and the launch of a CNG conversion app, more Nigerians are considering making the switch.
But before you rush off to your nearest conversion centre, there are a few things you should know. First, is CNG actually safer than petrol? Surprisingly, yes!
CNG is lighter than air, so if there’s a leak, it quickly disperses, reducing the risk of fire. Petrol vapours, on the other hand, tend to hang around the ground, increasing the chance of ignition. Plus, CNG needs a higher temperature to catch fire, making accidents less likely.
That said, proper installation is key. If your CNG system isn’t installed by a professional, it’s a disaster waiting to happen. Using low-quality materials or poorly fitting components can cause gas leaks, leading to potential fires or explosions.
Badly fitted tanks or faulty connections might also let gas escape into enclosed spaces, creating health risks or fire hazards. So, always make sure to get your CNG setup done by certified professionals.
For more details on what you should know before converting to CNG, check out Bolu’s latest piece. It covers everything you need to stay safe and make the switch smoothly.
Lendsqr's ₦1 billion bet on Nigerian lenders
Lendsqr, a Nigerian fintech startup that provides loan management software to banks and digital lenders, has rolled out a ₦1 billion on-lending initiative to help lenders get more capital.
This initiative is specifically designed for lenders with State Moneylender or Cooperative licences, giving them the financial boost they need to grow their businesses and provide more loans to their customers, especially those who operate online.
CEO Adedeji Olowe explained that while their lending technology has helped many lenders, it's not enough to scale without access to adequate capital.
With inflation currently at 32.15%, the demand for loans in Nigeria has skyrocketed, prompting Lendsqr to step in and offer flexible overdraft loans where lenders only pay interest on what they use, keeping costs manageable.
This initiative also aims to boost financial inclusion, allowing even smaller lenders to compete by offering credit to more people. Lendsqr’s system gives lenders and borrowers real-time updates on loan usage and repayments, making it easier to stay on top of finances.
Lenders who want to tap into this capital can apply through the Lendsqr Capital Portal, as long as they meet specific criteria, like being registered with the Corporate Affairs Commission (CAC) and having the proper licences.
Existing lenders can get funds immediately, while new ones have a three-month wait. With this initiative, Lendsqr aims to support more lenders, promote financial inclusion, and strengthen Nigeria’s lending landscape.
In case you missed them
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- Zimbabwe rolls out online system to ease immigration procedures
- Telecoming and The Movement Empire bring fitness to South Africans’ mobile devices
What I'm watching
- How Christianity and Judaism Split DOCUMENTARY
- The ENTIRE History Of Incest | Documentary
Opportunities
- Interswitch is looking for a Data Scientist and Business Developer Manager in Lagos. Apply here.
- Flutterwave is hiring for several roles in Nigeria, Malawi, Egypt, and South Africa. Apply here.
- Paystack is hiring for several roles in Nigeria and Ghana. Apply here.
- Moniepoint is recruiting for several roles in Lagos and remotely. Apply here.
- Briter Bridges is hiring for several roles in Nigeria, Kenya, and London. Apply here.
- Kuda is looking for a Product Manager. Apply here.
- Quidax is hiring a Head of Growth and Partnerships. Apply here.
- Kuda is hiring a Senior IOS Engineer. Apply here.
- Meta is hiring software engineers here.
- Follow Techpoint Africa's WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a lovely Tuesday!
Victoria Fakiya for Techpoint Africa.